Data study by fintech app Bumped shows that when rewarded in Kroger stock for spending with the Kroger Family of Brands, customers start spending less at competitive grocers, and more at the brand they own
Bumped—the fintech company on a mission to create an ownership economy through fractional stock rewards—released data from their two-year pilot study that indicates making grocery customers into owners can increase visits and spend.
Bumped users who were rewarded in fractional shares of stock for their spending with the Kroger Family of Brands like Fred Meyer, Food 4 Less, Harris Teeter, King Soopers, QFC, and Ralphs — became owners in the nationwide grocery brand. They then shopped with their Kroger store an average 31 percent more often, and spent an additional 32 percent monthly. That means customers are spending $73.94 more at their Kroger store each month once they become owners.
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“In a category where convenience matters, creating an owner has resulted in the consumers’ willingness to go the extra mile,” says David Nelsen, CEO and Founder of Bumped. “An additional trip every month among the entire segment of Kroger owners shows that stock rewards are powerful enough to get your customers to drive past your competitor and back to you.”
The Bumped pilot ran for two years and rewarded over 13,000 US consumers in fractional stock rewards when they spent at more than 80 brands. Users chose their favorite brand in each category to receive stock rewards from.
The findings of the holistic Bumped pilot were researched and reported on by The Columbia School of Business, who released their independent study last week.
